On Monday, General Electric Company (NYSE:GE)’s shares inclined 0.03% to $30.27.
GE (GE) has signed a contract to sell its commercial lending and leasing business in Japan, counting Capital Finance, Fleet Service and Vendor Finance, to Sumitomo Mitsui Finance and Leasing (SMFL), a member of Sumitomo Mitsui Financial Group. The transaction comprises employees of the business and represents aggregate GE ending net investment (ENI) of about US $4.6 billion. The sale price is about US $4.8 billion.
Sumitomo Mitsui Finance and Leasing is one of Japan’s largest leasing companies. It is developing business overseas, counting in China, Southeast Asia and the United States. As formerly declared, GE is embarking on a strategy to focus on its high-value industrial businesses and is selling most of GE Capital’s assets. GE will retain the financing verticals that relate to GE’s industrial businesses. When accomplished, recently’s transaction will contribute about US $0.6 billion of capital to the overall target of about US$35 billion of dividends predictable to be paid to GE under this plan (subject to regulatory approval).
The transaction is subject to customary regulatory approval. It is predictable to close in April 2016. Morgan Stanley acting together with Mitsubishi UFJ Morgan Stanley Securities offered financial advice and Nagashima Ohno & Tsunematsu offered legal advice to GE.
General Electric Company operates as an infrastructure and financial services company worldwide. The company’s Power and Water segment offers gas, steam and aeroderivative turbines, nuclear reactors, generators, combined cycle systems, controls, and related services; wind turbines; and water treatment services and equipment.
KKR & Co. L.P. (NYSE:KKR)’s shares dropped -4.93% to $14.45.
KKR, a leading global investment firm, declared the closing of the acquisition of Allianz Capital Partners’ stake in the Selecta Group (“Selecta”). All conditions precedent in the acquisition agreement reached between KKR and ACP in October 2015 have been fulfilled, counting the consent of Selecta’s bondholders.
The partnership with KKR aims at further strengthening Selecta’s leading position in European vending and coffee services. Selecta is geographically diversified across Europe with operations in 21 countries and a special focus on Switzerland, Sweden and France. The company operates more than 145,000 vending machines, employing about 4,500 people, and serves more than 6 million consumers daily.
Under ACP’s stewardship, Selecta has been able to maintain and strengthen its competitive position despite a difficult overall vending environment in recent years. KKR has already supported Selecta since 2014, when KKR offered €220 million in long-term financing as part of the Group’s overall refinancing, which was a major milestone for Selecta in driving identified growth initiatives.
KKR & Co. L.P. is a private equity and real estate investment firm specializing in direct and fund of fund investments. It specializes in acquisitions, leveraged buyouts, administration buyouts, credit special situations, growth equity, mature, mezzanine, distressed, and middle market investments.
At the end of Monday’s trade, ConocoPhillips (NYSE:COP)‘s shares surged 2.91% to $49.53.
ConocoPhillips (COP) declared its 2016 operating plan. Key highlights from the plan comprise:
- $7.7 billion capital budget;
- 1 to 3 percent production growth, adjusted for asset sales; and
- $7.7 billion of operating costs.
The company also declared it anticipates to close about $2.3 billion of non-core asset sales. This number comprises about $0.6 billion from transactions that closed through the first three quarters. The remaining $1.7 billion represents transactions with definitive agreements in place that are predictable to close in the fourth quarter of 2015 or the first quarter of 2016. Production from these assets, of which 80 percent is natural gas, accounts for more than 70 thousand barrels of oil equivalent per day (MBOED) of 2015 production. The company continues to pursue ongoing, non-core asset sales across the portfolio.
2016 Capital Budget Allocation
The 2016 capital budget of $7.7 billion represents a 55 percent reduction contrast with 2014 capital spending and a 25 percent reduction contrast with predictable 2015 capital spending. This comprises funding for base maintenance and corporate expenditures, development drilling programs, major projects, and exploration and appraisal spending. Reductions contrast with predictable 2015 capital spending of $10.2 billion come primarily from lower major project spending, deflation capture and efficiency improvements.
By category, capital is allocated with about $1.2 billion, or 16 percent, to base maintenance and corporate expenditures; $3.0 billion, or 39 percent, to development drilling programs; $2.1 billion, or 27 percent, to major projects; and $1.4 billion, or 18 percent, to exploration and appraisal. By region, the breakdown is as follows:
ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids worldwide. Its portfolio comprises shale and oil sands assets; lower-risk legacy assets in North America, Europe, Asia, and Australia; various international developments; and exploration prospects. ConocoPhillips was founded in 1917 and is headquartered in Houston, Texas.